11.14.06
Posted in Uncategorized, India, investment, Information Technology at 12:53 am by maasmedia
BHARTI Airtel and Microsoft on Sunday announced a strategic partnership that will offer a range of software and services for SMBs in India. The partnership will begin by offering to Indian SMBs Microsoft Solutions for Hosted Messaging and Collaboration. It will also offer other hosted applications like CRM, Accounting, ERP, Unified communications and select Microsoft ISV applications. Both companies said they hoped to target over 6.5 lakh SMBs in India through this tie-up.
This service is predominantly aimed at companies with five or more employees, and is expected to be available in January 2007. These companies will now be able to enjoy the same experience as large enterprise customers without initial investments using a pay-as-you-go model, Bharti said in a statement.
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09.06.06
Posted in India, investment, SEZ, Government at 8:41 am by Mridul
Warehousing hub at Kandla
A Rs 200-300-crore warehousing hub is coming up outside Kandla Port. Jointly promoted by Kandla SEZ and IL&FS, the facility is said to be India’s first in scope and dimensions. Already about 20 plots have been allotted for warehouse facility outside the port for setting up container freight stations and warehouses. The port has also facilitated establishment of storage facilities for over 8 lakh kilolitres of liquid which are being operated by private parties. The liquid handling facilities connect the tank farms directly to oil jetties through pipelines.
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Posted in Review, News, India, investment, IPO at 8:41 am by Mridul
Gold Souk IPO in 2007
NEW DELHI: Bullish on jewellery consumption in the country, Aerens Gold Souk, a jewellery mall under the Aerens group, is planning to come out with an IPO next year. The company is also negotiating with US and UK-based real estate funds, and hopes to finalise talks by the end of this fiscal, Aerens Gold Souk International director Ashish Gupta said. “As per our vision plan, we require $4 billion (about Rs 18,000 crore) for expanding our business. For funding of such magnitude we are looking at an IPO,” he said. Besides the IPO and real estate funds, the company is also exploring other sources for raising funds, including promoters’ contribution, private equity funding, debt, etc.
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08.31.06
Posted in Review, News, India, investment, SEZ, Government, Prices, Real Estate at 11:40 pm by Mridul
SEZ: Is it Export promotion or Real Estate Promotion: says RBI
Now the SEZ fever has disturbed the (Reserve Bank of India) RBI too. The RBI has said that the SEZ policy 2005 sees to be more focused on the Real Estate promotion rather that Export promotion. In the recent reports, the RBI has said that “the tax breaks for the SEZ are only justifiable only if they establish forward or backward linkage with the domestic economy”.
Our review: If RBI is now in picture, then it’s a matter of concern. This will definitely ignite the political dispute for SEZ into the states also. The promoters who have already set up their plants in the existing operational SEZ must be the most happiest persons coz they would be affected by any the policy change into the SEZ act, since their units were set up in the SEZ which the old policy was in action.
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08.30.06
Posted in News, India, investment, SEZ, Government, Real Estate at 2:53 am by Mridul
Kerala inviting partners for SEZ in State.
The Kerala State Industrial Development Corporation (KSIDC) is inviting proposals, the real estate developers to partner into the SEZ that they are willing to set up in Kerala State. The corporation has acquired land in the Districts of Kannur, Kozhikode and Malappuram. KSIDC has acquired approximately 250 acres in each of the districts. The KSIDC has no problem setting up industries like textiles, garments, rubber products, healthcare, tourism, resorts, food processing etc.
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08.29.06
Posted in Review, News, investment, SEZ, Real Estate at 7:49 am by Mridul
Rs 15,000-crore refinery in Jamnagar SEZ : Essar
As the SEZ fever is going on in the country. Essar group has decided to set up a Rs 15,000-crore, 16-20 million tonne green-field refinery in its upcoming SEZ near Jamnagar. Jamnagar already boasts of the world’s largest grassroots refinery built by Reliance Industries (RIL). RIL is also setting up a Rs 25,000-crore, 27-mt refinery in its SEZ in the district. Essar has set a target of touching a cumulative refining capacity of 32 mt by 2009-10. The capacity expansion will be carried out in a phased manner. While the refinery at Vadinar, in Jamna¬gar, is ready for commissioning, the new capacities will be a part of Essar’s 1,000-hectare SEZ in the same district.
Essar has already got formal approval for developing the 1,000-hectare SEZ, for which it would pump in an estimated Rs 15,000 crore - most of which would be invested in constructing the new refinery.
Essar Oil, the group company executing the refinery project, has already begun the groundwork for construction of the new refinery as well as other downslream petrochemicals units that would be set up in the SEZ. Executives of Essar Oil have begun parleys with the state ports regulatory authority, asking the latter lo suggest suitable locations for putting up single buoy moorings (SBMs) in Gujarat waters. The company has sought approval for two SBMs.
The company is preparing a detailed project report for the new refinery as well as the two SBMs, the source added.
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08.28.06
Posted in News, India, investment, Government, Real Estate at 6:03 am by Mridul
Industrial Model Town ; in Faridabad
THE HARYANA government has decided to set up an Industrial Model Town (IMT) in Faridabad. The Haryana Small Industrial Development Corporation (HSIDC), entrusted with the task to develop the IMT, has started the process of acquiring 1,850 acres. According to Ballabgarh MLA M.S. Sharda Rathore, the state government issued a notification on July 31 empowering the HSIDC to acquire the land for the proposed IMT.
The Faridabad IMT would be on the pattern of Manesar in Gurgaon, she said. Both Indian and multinational companies will be provided industrial sites and facilities to set up pollution-free units. Sectors 66, 67, 68 and 69, situated across the Agra Canal in the Ballabgarh block, have been identified as the ideal location for the IMT in a preliminary survey
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08.25.06
Posted in Review, India, investment, SEZ, Act, Government, Information Technology, Real Estate at 3:44 am by Mridul
SEZ Caps: Central and State governments stands against each other.
So the SEZ war is on between the Central and the State Governments. PRESSURE is building on the central government from states for removal of the ceiling on SEZs by the empowered group of ministers (eGoM). The EGoM, which is meeting on Wednesday to review the cap, has to take the crucial decision on whether to maintain the cap at the original level, increase it, or do away with it.
State Ministers, Sharad Pawar, TJayanidhi Maran, Naveen Patnaik have been writing to the Central Government for this issue. They have asked the Government that the SEZ proposals for Maharashtra cannot be accommodated if the ceiling is not removed leading to loss of potential investment. With the commerce department formally approving 46 new SEZ proposals on Tuesday, the limit of 150 imposed by the EGoM has been exhausted, which has brought the State Ministries to react against the EGoM. The Orissa CM pointed out that his state, which had become an important investment destination for minerals and metals, IT and IT-enabled services, would lose out if the SEZ cap was not removed. He said Orissa was not as fast as many other states in getting sanctions and there should be fair and equal opportunities for all states in the sanctioning process.
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08.23.06
Posted in News, India, investment, Government, Real Estate, FDI at 10:51 pm by Mridul
FDI norms for Real Estate Development in India can be eased
Government of India is planning to ease the entry of the foreign investors in the country. The norms which were earlier being set by the Indian government were difficult so that the overseas Real Estate Developers cannot get into the market easily. But this news will not bring a cool breath to the Overseas Real Estate Developers.
The norms which were being set earlier:
For Commercial Development: A minimum area of 50000 sq mts.
For Residential Development : A minimum area of 10 Hectares.
These norms are now eased to 10000 sq mtr for the commercial and 10 Acres for the residential projects. Investors are not allowed to repatriate original investments before three years of completion of minimum capitalization. However in special cases, the foreign investor can be permitted to exit early but with prior FIBP approval.
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08.22.06
Posted in Review, News, India, investment, SEZ, Exemptions, Act, Information Technology at 11:27 pm by Mridul
Newly proposed policies by the Ministry of Finance for Special Economic Zones (SEZ)
So the Finance Ministry has come up with THEIR approach for the Special Economic Zones (SEZ’s). The Ministry has the following points to say:
(1) The New Units that are going to come up in these Special Economic Zones will have to make fresh investments in the Plant and Machinery i.e. they cannot shift their existing machinery into the SEZ.
(2) The Companies in the Special Economic Zones cannot trade the goods via the DTAs (Domestic Tariff Areas).
(3) Trading activities can only be carried out by those companies that are importing the good and reexporting them.
Now, the basic idea behind the SEZ is to attract investments, create infrastructure and employment and generate economic activities.
Our Review: Well, these points have both advantages and disadvantages for the developer and the companies opting to put up units in the special economic zones. The original equipment manufacturer will defiantly be a gainer in these conditions, since there will be no traders sitting up in these zones, so the manufacturer will be benefited by the tax sops. The developer will have to allot the units to the OEM’s only. So the developers may feel a little pinch from the real estate point of view in their SEZ’s. Well, what we feel is that there is nothing much to worry about. Because our country has got a good number amount of manufacturers and exporters right !!!!
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08.21.06
Posted in News, investment, SEZ, Service Tax, Exemptions, Information Technology, Automobiles, Biotechnology, Pharma at 7:21 am by Mridul
Lupin planning SEZ in India for themselves
Lupin, a global market leader in API and formulations in the Pharma Industry, is planning an SEZ in Maharashtra. The initial investment would be Rs 200 crore, which may go up to anywhere between Rs 400 crore and Rs 500 crore. The company has been heard for hunting land in Maharashtra. When asked to a senior official, he said that the company is would like to set up a manufacturing plant inside the SEZ and would not sell space to others. “We propose to put up a manufacturing plant inside the SEZ, but, in no way, are we going to develop it for the use of others,” a source said.
Our Review: With more and more SEZ coming up in the India, India would definitely be the preferred commercial hub of the world. The incentives that the government is giving in the SEZ would attract the foreign investments also. With Service Sector also waiting to get the incentives, more and more service providers outside India would prefer Indian companies to provide services at low costs.
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Posted in India, investment, SEZ, Information Technology, Automobiles, Biotechnology at 6:56 am by Mridul
Mahindra & Mahindra investing Rs 1,500 cr in Maharashtra
Mahindra & Mahindra has shortlisted four states Maharashtra, Tamil Nadu, Andhra Pradesh, Uttranchal and Karnataka. The company is planning to invest Rs 1,500 crore in next 2-3 years, under its automobile, infrastructure and information technology business in Maharashtra.
The company has signed an MoU (Memorandum of Understating) with the Government of Maharashtra State for extending its Nasik facility for manufacturing its multi purpose vehicle “Ingenio”, with an investment of Rs 550 crore. The project will just double the capacity of the company. Mahindra & Mahindra has planned two SEZ in Maharashtra, one near Pune which will bring in Rs 1000 crore and a Biotech SEZ in Thane will fetch Rs 150-200 crore. The total investment would be around investment to around 1500 crore. The automotive division of M&M is also in talks with Indian Institute of Technology, Kanpur for developing a bio-diesel technolgy.
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08.20.06
Posted in News, investment, Life Insurance at 6:05 am by Mridul
ADAG company Reliance Life Insurance on Thursday announced the lunch of Reliance Connect 2 Life Plan Reliance Connect 2 Life is a 15 year insurance-cum-savings plan for individuals in the age group of 18 to 45 years with a minimum sum assured of Rs one lakh. With Connect 2 Life, for the first time ever, the Indian consumer would get hassle free life insurance - instantly - without any medical check-up. “Reliance Connect aims to provide products that makes life insurance hassle-free and the policy can be upgraded to keep pace with individual lifestyle”, said Reliance Life Insurance’s Chief Exective Officer P Nandagopal.
The target is highly ambitious considering that AMP Sanmar, when it was acquired by Reliance, was at the bottom of the ranking list. Although Reliance had acquired AMP Sanmar a year ago the group had been quiet on its business as it has been on a recruitment overdrive. Reliance Life Insurance has 30,000 insurance advisors spread over 158 branches across 143 locations and a call centre to service its customers.
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08.19.06
Posted in Review, News, India, investment, SEZ, Service Tax, Exemptions, Act, Government at 6:17 am by Mridul
Service Tax breaks to SEZ in pipeline
The Ministry of Industry and Commerce is now planning to give service tax breaks to the companies opting to set up their units in the Special Economic Zones around the country. The companies which are already exempted from Service Tax in these SEZ’s are the companies that provide the services within the Special Economic Zone. Now the service providers having their units in SEZ will get this benefit too if this notification is issued. The export promotion council for EOUs and SEZ’s has taken up the issue with the government saying that “The SEZ Act clearly states that so long as a service is related to an authorised operation in an SEZ, exemption from service tax should be provided irrespective of where it is rendered.
Our Review: See, the Act is under and with the Government only and we feel that this Act is going to face amendments soon. How could be the finance ministry be happy with the Act when there is nothing that the government is getting from it. If it was upto the government, they would act as a sleeping partner in all the commercial activities going in the country.
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Posted in News, India, investment, SEZ at 6:05 am by Mridul
So here is the list of projects which are expected to start soon in India.
Reliance Haryana SEZ : SEZ (Haryana) : Haryana : Rs. 40,000 Cr.
Reliance Petroleum : jamnagar Petroleum Refinery (SEZ) : Gujarat : Rs. 25,000 Cr.
Mittal Steel Company NV : Integrated Steel (Jharkhand) - Phase 1 : Jharkhand :Rs. 15,000 Cr.
Nuclear Power Corp of India :Jaitapur Nudear Power :Maharashtra : Rs. 13,000 Cr.
Vedanta Alumina : Aluminium Smelter (Jharsuguda) : Orissa :Rs. 9,500 Cr.
SAIL : Integrated Steel (IISCO) : W Bengal, jharkhand : Rs. 8,107 Cr.
AP Power Development : Krishnapatnam Power : Andhra Pradesh : Rs. 8,000 Cr.
Bihar State Electricity Board : Nabinagar Thermal Power : Bihar : Rs. 8,000 Cr.
ONCC : Refinery (Barmer) : Rajasthan : Rs. 7,967 Cr.
Hindalco Industries : Integrated Aluminium (Sidhi) : Madhya Pradesh : Rs. 7,700 Cr.
Neyveli Lignite : Lignite-Based Power (South Gujarat) : Gujarat : Rs. 7,500 Cr.
Arunachal Pradesh Govt : Naying Hydro Electric Power : Arunachal Pradesh : Rs. 5,000 Cr.
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Posted in News, India, investment at 12:51 am by Mridul
Reliance in talks with Himachal Govt. for Joint Venture
After going on bullish about the Retail Business in India, RELIANCE Industries is in talks with the Himachal government for setting up 25 joint venture to run rural business hubs in the state. The business hubs in Himachal will be based on a similar model as that of Punjab. The company is evaluating various options and will be using the JV for the rural agri-retail business. The company is also learnt to be in talks and some central government outfits as well, primarily for warehouses.
Reliance is also exploring options to take over state government unit Himachal Pradesh Horticultural Produce, Marketing and Processing Corporation (HPMC). The company’s business arrangement with the state government will be for vegetables and apples.
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Posted in News, India, investment, share market at 12:50 am by Mridul
KS Oils to raise Rs 92 crore abroad via securities
Edible oil manufacturing company KS Oils will raise over Rs 92 crore through the issue of FCCBs or other securities. The board approved raising funds through the issue of FCCBs, GDRs or other instruments at the recently held meeting, the company informed the BSE. The company would also seek shareholders’ approval for the proposal at ihe EGM to be held on September 15.
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08.17.06
Posted in News, India, investment, airlines at 1:02 am by Mridul
Jet Airways and Air Sahara in Talks again
Jet Airways and Air Sahara are now taking initial steps towards reviving the buyout deal originally signed between the two in January this year. Sources from both airlines, who did not wish to be identified, said there is a realisation that the current state of affairs is harming the interests of both parties. Around Rs 2,000 crore of Jet Airways is stuck due to the breakdown of talks between the airlines. Of this, Rs 1,500 crore is in an escrow account, and another Rs 500 crore that it had paid to Air Sahara as guarantee money is also held up.
Jet Airways executive director Saroj Dutta said, “There is nothing to say on the issue”, while the Sahara group spokesperson said there is nothing substantial yet. However, sources close to the developments say the channels of communication were never closed and emissaries from both sides have been talking to each other.
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Posted in News, India, investment, share market, IPO at 12:47 am by Mridul
Varun Shipping to raise Rs 2,500 crore in the market
Varun Shipping said on Monday its board had approved raising Rs 2,500 crore through an issue of securities from the domestic and overseas markets. The board also decided to raise the limit of foreign institutional investor holding to 49%, the company said in a statement.
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